Agricultural Productivity and Structural Transformation: Evidence from Brazil
- (pp. 1320-65)
Abstract
We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor-bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor-saving and led to industrial growth, as predicted by the model.Citation
Bustos, Paula, Bruno Caprettini, and Jacopo Ponticelli. 2016. "Agricultural Productivity and Structural Transformation: Evidence from Brazil." American Economic Review, 106 (6): 1320-65. DOI: 10.1257/aer.20131061Additional Materials
JEL Classification
- J43 Agricultural Labor Markets
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q16 Agricultural R&D; Agricultural Technology; Biofuels; Agricultural Extension Services